Veteran gold guru and chairman of the Tanzanian Royalty Exploration Corporation, Jim Sinclair told an audience of 591 in Vancouver today that the gold price correction was over.

‘This is probably a historic day for the gold price,’ he said. ‘With the $1,275 barrier broken we are back on the way up.’

The gold price jumped after Fed chairman Ben Bernanke said ‘highly accommodative’ monetary policy will be needed for the ‘foreseeable future’ following a speech in Cambridge, Massachusetts after US markets had closed.

Gold going up

But Mr. Sinclair noted that technical indicators had been pointing to a change of direction this week. He expects gold to retest its all-time high of $1,923 by August 2013 and advance to $2,400 before succumbing to another correction.

Further out he has $3,200-$3,500 in his sights with much higher prices likely if the physical metals takeover from the futures pit as the price setting mechanism for precious metals, something he says might happen in three months’ time when the Comex inventories get too low for it to continue.

After the four-hour long meeting he sat down with ArabianMoney to give us some additional insights into how the gold market will move in the year ahead, and the full text of this interview and our notes from his main presentation will be available only to subscribers to our sister newsletter.

Mr. Sinclair is one of the most widely followed gold commentators in the world and advised the legendary Hunt Brothers in the late 1970s when they cornered the silver market driving silver to $50 an ounce, a price still unrepeated today. His website www.jsmineset.com is one of the most popular gold resources.